The Decarbonisation of the UK – is 2021 the year to begin?
For anyone interested in some detailed reading and analysis of the future of the UK’s automotive framework, the Government formally released a key document yesterday (14 July 2021) detailing just how the UK will change – with particular focus on two absolute key dates for the electric vehicle industry 1) 2030 the end of sale for all new petrol/diesel cars; and 2) 2035 all new cars to have zero tailpipe emissions.
With a near £3 billion package on offer, the Government have set out a “road to 2035” timeline which will see key deadlines, schemes and programs to achieve these ambitious aims. Even for us within the industry, we truly understand the significant undertaking for the UK Government. This is why we must work together as an industry at all levels to ensure we have a cohesive and partner-led approach to fulfil these endeavours. At e-Car Lease, we have already partnered with a crucial body and voice for EV drivers across the UK who will be helping this to happen – the EVA England
As part of the document, you will notice a subtle separation between ULEZ (Ultra Low Emission Vehicles) and ZEVs (Zero Emission Vehicles). Effectively we have hybrid and plug-in hybrid options (ULEZ) which are a combination of electrification and combustion technology contrasting against zero emission vehicles, which are purely electric lithium-ion batteries or hydrogen based vehicles. Moving to “ZEV” uptake is due to occur by a CO2 regime change in 2024 and a £600 million plug-in grant support to be set in place until 2022/2023 amongst other things.
There were some obvious concerns on our part in relation to the grant, currently £2500 for certain vehicles, which we believed would end soon. And finally, the Government have stated that until at least March 2025, the favourable company car tax rates will stay in place. This means that company car and salary sacrifice drivers can enjoy 2% BiK, which equates to an almost “free” company car tax situation. As of 2021, it is estimated that over 500,000 of our vehicles are ULEVs and or ZEVs, and there is now a 60% increase in vehicles under £35,000.
The price of a vehicle is essential in the EV world as the grant which cars receive from the Government must be priced under £35,000 (i.e. to get the £2,500 support.) As you will note in the document, the Government have made a clear pledge – “We will continue to fund the plug-in car grant until at least 2022/23” By grants, tax incentives and regulatory measures, it will simply become cheaper for the personal or business driver to use a ZEV. To support this, the Government are also looking to bolster the used-car market too which is so crucial to enhance consumer confidence and, for our new car/leasing industry, residual values.
Are we ready to transition to zero emission vehicles by 2035 (cars and vans)?
Other awareness and confidence boosting initiatives are set to be introduced for EVs. The Government have identified key and clear points which need resolution, including:
- EV recovery – helping operators and drivers to understand how to deal with damaged and broken down electric vehicles;
- TechSafe scheme – to enhance the EV technicians skills and knowledge, so EVs are safely and competently repaired;
- Information – a Build Back Greener campaign will launch to spread knowledge about EVs and how they can assist customers;
- Battery Health – working with bodies/companies to monitor and understand battery health, which is so crucial for securing confidence in 2nd hand EVs;
- Green Number Plates – identifying and spreading awareness of ZEVs; and
- EV Approved scheme – part-funded by the National Franchised Dealers Association, this will find suppliers who are approved to sell and deliver leading standards of customer-care
As the document details, many fleets across the UK have already started to transition to EVs and these companies will have a seismic impact in EV supply and awareness. For example, AstraZeneca with a 17,000 fleet, has committed to being fully-electric (ZEV) by 2025, as has Centrica’s 15,000 fleet. Putting EVs on the road in various guises is so crucial for promotion and awareness. Families and friends of these employees will truly see the wonderous capabilities of the EV in situations where this may not have been the case.
In support of infrastructure, i.e. to avoid the “not enough chargers” argument you often hear, there will be infrastructure support which will include:
- A 2021 EV Infrastructure Strategy;
- A £1.3 billion investment to accelerate the rollout of motorway, street and workplace charging;
- Home charge point funding via grants until 2045/25;
- Increased regulation to improve experience at public charge points;
- Increased regulation to improve the provisions of charge points at home; and
- Ofgem consultation / changes to managed connection charging by 2023.
Access to, and ease of using, charge points is massively critical to the confidence and practicality of EVs. The e-Car Lease team work alongside ZAP Map to help educate customers to this effect, by showing the nearest (and quickest) charging infrastructure to them. As highlighted in the report, there are nearly 4,500 rapid chargers and a driver is never more than 25 miles from a rapid charge point.
But building a world-class infrastructure isn’t just about the volume of places to charge, it is also about accessible points (for vulnerable or disabled EV drivers), ergonomics, physical location and payment methods. A more standardised and uniform approach is now necessary to prevent any confusion. The Government have also identified smart charging capability and battery recycling to manage the overall impact on the environment.
Where the UK can be leading in the EV industry is by having the manufacturing of vehicles, batteries and parts here in the UK. The Government have pledged around £500 million through the Automotive Transformation Fund to build an internationally competitive EV supply chain and bolster this with a Green Jobs recruitment drive. Already Nissan and Stelantis have announced significant investment via EV dedicated factories.
An estimated 40,000 jobs will centre around this industry. And, to ensure further innovation, the Government have pledged to support ZEV technologies and grants will be made available to supply chains. For 2021/22, a £20m fund is available for those business and initiatives which are seeking to remove key barriers.
To help the above become a reality, manufacturers are busily creating cost-efficient and attractive EVs for our personal and business leasing customers to enjoy. The car pictured from the recent Goodwood Festival of Speed is one such illustration, having already been named “Car of the Year 2021” by leading publication Auto Express.
In terms of the car shown, the HYUNDAI IONIQ 5 ELECTRIC HATCHBACK 160kW Ultimate 73 kWh 5dr Auto [Tech], this is based on the following configuration:
- Gravity Gold Matte Paint
- Leather – Moonlight grey
- 20″ Alloy wheels
As standard the car includes a 12” instrument cluster. 12” touchscreen navigation, blind spot collision avoidance assist, Bluetooth, Forward Collision Avoidance Assist. Head up display – augmented reality (AR) and standard displays.
Lane follow assist, Lane keep assist, parking – rear view monitor with parking guidance dynamic, Parking distance warning – forward and reverse, Phone connection with apple CarPlay and android auto, mart cruise control with stop and go functionality.
Smart electric tailgate, acoustic windscreen, dual LED low/high projection headlamps, electrically adjustable/heated/folding mirrors, heated and privacy rear windscreen, LED daytime running lights, LED fog lights, rear spoiler solar glass windscreen, V2L (V2L (Vehicle to Load inside and Outside), tech pack, 20” alloys, trailer wiring package.
Thatcham Cat 1 alarm, immobiliser, Bose premium audio with a subwoofer, 4-way electrically adjustable driver’s seat, 60/40 split folding seats, climate control, heated front and rear seats, leather upholstery, ventilated front seats, hill start assist,, 7-pin type 2 charging cable.
On the technical-side company car and business users can note the P11d at £46,385 and C02 at 0g/km. The 72kWh usable lithium-ion battery delivers 215ps, 0-62 terms of 7.4 seconds and top speeds of 115mph. In terms of the range on the Ioniq 5, expect a winter range of around 200 miles on a full charge and 270 miles in summer.
The maximum AC charging rate on the Ioniq is 11kW AC (0-100% will take about 8 hours) and the maximum charging time on DC is 232kW (10-80% is around 18 minutes).
In terms of AC charging on the Ioniq 5, please see below:
In terms of DC charging on the Ioniq 5, please see below: